Caracas has reached an agreement with Washington to export up to US$2 billion worth of crude oil to the United States, a move that would redirect supplies away from China and help Venezuela stabilise declining oil output, US President Donald Trump said on Tuesday.
The deal marks a significant shift in energy flows and diplomacy between the two countries, long at odds over sanctions, governance and access to Venezuela’s vast oil reserves. It would allow Venezuelan crude to return to US refineries after years of sharply restricted trade.
Under the agreement, Venezuela is expected to supply between 30 million and 50 million barrels of oil, Trump said, without giving a detailed timeline for the shipments. The exports would primarily head to refineries along the US Gulf Coast, which are equipped to process Venezuela’s heavy crude, according to US officials.
The accord would divert barrels previously destined for China, Venezuela’s main oil buyer in recent years, and could help stem further production declines at the state-owned oil company PDVSA. Venezuelan oil output has fallen sharply over the past decade due to underinvestment, mismanagement and sweeping US sanctions.
“This is a flagship negotiation,” Trump said, describing the deal as part of a broader push to reshape Venezuela’s energy sector and expand the role of US companies.
Washington has steadily increased pressure on Caracas to open its oil industry to foreign investment. Trump has warned that failure to do so could lead to tougher measures, including the threat of military intervention, while publicly demanding “total access” for US and private companies to Venezuela’s oil fields and infrastructure.
Venezuela’s government has not released full details of the agreement, but the talks signal a pragmatic turn by both sides after years of confrontation. Analysts say Caracas is seeking to boost revenue and prevent further cuts to production, which has already fallen well below historic levels.
At present, Chevron is the only US oil company authorised to export Venezuelan crude under a special licence issued by the US Treasury. That authorisation allows limited operations in joint ventures with PDVSA and has provided a modest lifeline to Venezuela’s oil sector.
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US Interior Secretary officials said Gulf Coast refiners would be well positioned to absorb additional Venezuelan supplies, given their experience processing similar grades before sanctions curtailed imports.
The United States was once Venezuela’s largest oil customer, but exports dwindled after Washington imposed sanctions targeting PDVSA in 2019, citing concerns over democracy and human rights. Since then, Venezuela has relied heavily on shipments to China, often at discounted prices and through complex intermediaries to bypass restrictions.
Redirecting exports to the United States could improve cash flow for PDVSA and reduce logistical costs, while offering US refiners a nearby source of heavy crude at a time of shifting global supply patterns.
However, the deal also carries political risks for both sides. Trump has framed the agreement as leverage to force broader economic and political concessions, while Venezuela’s leadership faces internal criticism over opening strategic resources to foreign control.
Energy experts caution that Venezuela’s ability to sustain large export volumes remains constrained by aging infrastructure, power outages and limited access to technology and financing.
Even so, the agreement underscores how oil continues to shape diplomatic ties between Caracas and Washington, despite years of hostility. If implemented fully, it could mark one of the most significant resets in US-Venezuela energy relations in more than a decade.
